Where is FreshDirect positioned in this ecosystem relative to you?

Fresh Direct is a re-seller model, other than a marketplace model for direct sale of fresh local food (which is where we are). As I mentioned in Q&A, there is no dominant eCommerce player in this space. Fresh Direct is based mostly in New York and some other east coast cities. GrubMarket will be the first nation-wide marketplace for fresh local food with presence in many cities of west coast, east coast, midwest and other parts of the U.S.

If you hit the $1.7mm target GMV by December, what is your anticipated EBITDA run rate (pre growth expenditures)? What will your cash burn run rate be at year end? How far does this round take you?

We expect to keep the cash burn run rate by year end to be no more than $120K/month. In the next year, we will be able to keep to cash burn rate to be no more than $200K/month. This round will take us at least 30 months.

Any comment on Farmigo?

Farmigo is an early player in this space, and also our competitor. However, Farmigo burned several millions of dollars in the last 3-4 years, and yet as of today their business scale is similar to that of GrubMarket. Farmigo pivoted their business model before: earlier they made enterprise software for farmers, then they pivoted to online marketplace model. However, their delivery model is about building pickup sites in the community, instead of delivery to the doorstep of consumers which we ...

another question, sorry about not able to aggregate my questions into one question. How do you address food safety issue? food safety liability?

We enforce the highest and most rigid standard on food safety. We have comprehensive online terms and conditions, food inspection protocols to secure food safety. Because our strictness and diligence, food safety issues are rare seen and we always work with food producers to promptly address if any possible case could happen. Food safety liability is clearly defined by our online terms and conditions and our legal agreement with food producers. Moreover, because we don't store food in warehou...

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GrubMarket

Online Marketplace for Local Foods.

https://wefunder.com/grubmarket

Total raised on Wefunder: 298200

Total investors: 49

Quick facts

25% cheaper than Whole Foods. Farmers make 20-80% more.
$6M gross sales in our first year. $652K in April.
18,000+ registered users and 135+ restaurants.
Operate in 8 metro regions, and plan to add 10 more by Dec.
Farmers make 80% of every sale on GrubMarket.
Buyer LTV: $800. Farmer LTV: $5,000.

Team profiles

Mike Xu

GrubMarket

Online Marketplace for Local Foods

grubmarket.com/homepage.jsp

Newark, CA

Marketplace Food & Beverage Ecommerce

Highlights

1

25% cheaper than Whole Foods. Farmers make 20-80% more.

2

$6M gross sales in our first year. $652K in April.

3

18,000+ registered users and 135+ restaurants.

4

Operate in 8 metro regions, and plan to add 10 more by Dec.

5
Farmers make 80% of every sale on GrubMarket. 

6
Buyer LTV: $800. Farmer LTV: $5,000.  

GrubMarket

Quick facts

Team profiles

Highlights

Related company links

Team